(March 1, 2004 – E. Falmouth, MA) Hydroid Inc. announced today that they recently delivered two REMUS
vehicles to Fugro. The vehicles were specially configured to meet Fugro’s specific survey requirements. This contract
marks the first sale of REMUS systems into the commercial survey market.

Fugro representatives spent a week in February at Hydroid’s facilities in East
Falmouth, Massachusetts to participate in Factory Acceptance Testing and operations and maintenance training. Eric
Gifford, Hydroid’s Production and Customer Service Manager made the best of some severe winter weather and ran REMUS
missions in nearby Cape Cod Bay. Extremely cold weather and heavy ice had shut down Hydroid sea operations around Cape Cod
for most of January and February.

Fugro intends on conducting additional
trials in the Gulf of Mexico before putting the systems to work in their survey operations.Hydroid Inc. holds the
exclusive license from the Woods Hole Oceanographic Institution for the manufacture and further development of the REMUS
Autonomous Underwater Vehicle (AUV) technology.

For further information
contact Kevin McCarthy, Vice President of Marketing at Hydroid at Tel 508-457-9191, e-mail kmccarthy@hydroidinc.com.